Regional Development Programme of Georgia 2018-2021 Table of Contents

REGIONAL DEVELOPMENT PROGRAMME OF GEORGIA 2018-2021 TABLE OF CONTENTS I. Executive Summary…………………………………………………………………………………………………………………………………………………7 II. Foreword……………………………………………………………………………………………………………………………………………………….………17 II.1 Introduction..............................................................................................................................................................................................................................17 II.2 Legal provisions......................................................................................................................................................................................................................17 II.3 Programming system ...........................................................................................................................................................................................................18 III.II.4 SituationThe institutional and trends framework with regard of regional to territorial policy................................ cohesion and ................................competitiveness................................…………………………………………………….........................................................2119 II.5 Donor support..........................................................................................................................................................................................................................20 III.1 General context .......................................................................................................................................................................................................................21 III.1.1 Natural conditions.....................................................................................................................................................................................................21 III.1.2 Administrative division...........................................................................................................................................................................................21 III.1.3 Demography .................................................................................................................................................................................................................22 III.1.4 Macroeconomy............................................................................................................................................................................................................26 III.2 Territorial cohesion ..............................................................................................................................................................................................................30 III.2.1 General Infrastructure.............................................................................................................................................................................................30 III.2.2 Energy, water and sewage infrastructure......................................................................................................................................................31 III.3 Economic cohesion................................................................................................................................................................................................................32 III.3.1 Business sector............................................................................................................................................................................................................32 III.3.2 Small and Medium Enterprises (SMEs)...........................................................................................................................................................33 III.3.3 Innovation and technology....................................................................................................................................................................................34 III.3.4 Tourism...........................................................................................................................................................................................................................35 III.3.5 Cultural Heritage ........................................................................................................................................................................................................36 III.3.6 Agriculture.....................................................................................................................................................................................................................36 III.4 Social cohesion ........................................................................................................................................................................................................................37 III.4.1 Labour force..................................................................................................................................................................................................................37 III.4.2 Poverty............................................................................................................................................................................................................................38 III.4.3 Essential Social services .........................................................................................................................................................................................39 III.5 Governance................................................................................................................................................................................................................................40 IV. III.5.1TerritorialSelf development-governments ................................needs and potentials................................……………………………………………………………………………………………………….......................................................................................................................................4240 III.5.2 Fiscal sustainability...................................................................................................................................................................................................41 IV.1 INTRODUCTION......................................................................................................................................................................................................................42 IV.2 SWOT Analysis.........................................................................................................................................................................................................................43 IV.3 Challenges – needs to be delivered or potentials to be developed ................................................................................................................53 IV.3.1 Horizontal challenges for regional development policy in Georgia ..................................................................................................53 V. IV.3.2BroaderNeeds vision and of thepotentials Regional of individual Development territories policy................................ in Georgia. Objectives................................ and principles................................ of regional................................ policy67.............59 IV.3.3 Policy needs..................................................................................................................................................................................................................63 V.1 Rationale and importance of regional policy for Georgia...................................................................................................................................67 VI.V.2 ProgrammePrinciples Objectivesof regional policyand Priorities in Georgia…………………………………………………………………………………………………………………….......................................................................................................................................................................7168 V.3 Strategic objectives of regional policy in Georgia in the perspective of 2030 ..........................................................................................69 VI.1 Regional development policy goals in medium term perspective..................................................................................................................71 VI.2 The role of RDP 2018-2021...............................................................................................................................................................................................72 VI.2.1 Priority 1. Improvement of key infrastructure supporting competitiveness and environmental sustainability of the country and its regions....................................................................................................................................................................................................................76 VI.2.2 Priority 2. Support to SMEs, growth-oriented sectors of economy and export promotion...................................................78 VI.2.3 Priority 3. Improvement of human capital ....................................................................................................................................................79

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